Skip to main content
Log in

Why do groups cooperate more than individuals to reduce risks?

  • Published:
Theory and Decision Aims and scope Submit manuscript

Abstract

Previous research has discovered a curious phenomenon: groups cooperate less than individuals in a deterministic prisoner’s dilemma game, but cooperate more than individuals when uncertainty is introduced into the game. We conducted two studies to examine three possible processes that might drive groups to be more cooperative than individuals in reducing risks: group risk concern, group cooperation expectation, and pressure to conform to social norms. We found that ex post guilt aversion and ex-post blame avoidance cause group members to be more risk concerned than individuals under uncertainty. These concerns drive groups to choose the cooperation (and risk-reduction) strategy more frequently than individuals. Groups also have higher cooperation expectations for their corresponding groups than individuals have for their corresponding individuals. We found no evidence of pressure to conform to social norms driving groups to be more cooperative than individuals.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Baumeister R. F., Stillwell A. M., Heatherton T. F. (1994) Guilt: An interpersonal approach. Psychological Bulletin 115: 243–267

    Article  Google Scholar 

  • Charness G., Dufwenberg M. (2006) Promises and partnership. Econometrica 74(6): 1579–1601

    Article  Google Scholar 

  • Charness G., Jackson M. O. (2009) The role of responsibility in strategic risk-taking. The Journal of Economic Behavior and Organization 69(3): 241–247

    Article  Google Scholar 

  • Dawes R. M. (1980) Social dilemmas. Annual Review of Psychology 31: 93–169

    Article  Google Scholar 

  • Fischbacher U. (2007) Z-Tree: Zurich toolbox for ready-made economic experiments. Experimental Economics 10(2): 171–178

    Article  Google Scholar 

  • Gong M., Baron J., Kunreuther H. (2009) Group cooperation under uncertainty. Journal of Risk and Uncertainty 39(3): 251–270

    Article  Google Scholar 

  • Heal G., Kunreuther H. (2007) Modeling interdependent risks. Risk Analysis 27(3): 621–634

    Article  Google Scholar 

  • Kahneman D., Tversky A. (1979) Prospect theory: An analysis of decisions under risk. Econometrica 47: 313–327

    Article  Google Scholar 

  • Kunreuther H. (2009) The weakest link: Managing risk through interdependent strategies. In: Kleindorfer P. R., Wind (Eds.) Y. (eds) Network challenge: Strategy, profit and risk in an interlinked world. Wharton School Publishing, Upper Saddle River, NJ

    Google Scholar 

  • Orbell, J., Dawes, R. (1981). Social dilemmas. In G. Stephenson & H. H. Davis (Eds.), Progress in Applied Social Psychology (Vol. 1, pp. 37–65) New York: Wiley.

  • Seymour B., Daw N. D., Dayan P., Singer T., Dolan R. J. (2007) Differential encoding of losses and gains in the human striatum. Journal of Neuroscience 27: 4826–4831

    Article  Google Scholar 

  • Tajfel H. (1982) Social psychology of inter-group relations. Annual Review of Psychology 33: 1–39

    Article  Google Scholar 

  • Turner J. C. (1991) Social Influence. Brooks/Cole Publishing Company, Pacific Grove, CA

    Google Scholar 

  • Viscusi W. K., Magat W. A., Huber J. (1987) An investigation of the rationality of consumer valuations of multiple health risks. RAND Journal of Economics 18(4): 465–479

    Article  Google Scholar 

  • Wildschut T., Insko C. A. (2007) Explanations of interindividual-intergroup discontinuity: A review of the evidence. European Review of Social Psychology 18: 175–211

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Min Gong.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Gong, M., Baron, J. & Kunreuther, H. Why do groups cooperate more than individuals to reduce risks?. Theory Decis 75, 101–116 (2013). https://doi.org/10.1007/s11238-012-9318-3

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11238-012-9318-3

Keywords

JEL Classification

Navigation